Suppose that a treasury bond costs $100 and promises a payment of $105 in one year. A bond from the Acme Corporation costs $100 and promises to $107 in a year. Assume that Acme pays the $107 with probability p. What are the likely values of p under the following scenarios? (1 pt each)

A: With probability 1-p, Acme defaults and pays no interest, but the principal is returned.

B: With probability 1-p, Acme defaults and pays no interest or principal.